Can my father's debtors make a claim on insurance I received after his death?

Question

My father passed away this year. I am receiving requests from debtors on his behalf. I stand to inherit some money from his insurance policies. Can they demand payment from me ?

Answer 1

Depends. If you are the BENEFICIARY of the policies, they have no claim on your monies or benefits. Now, that won't stop slimey debt collectors from trying to trick or guilt you into paying. You'll have to brush up on fair debt collection laws, tell them to stop calling & harrassing or you'll file a complaint.

BUT, if his ESTATE is the beneficiary, then yes, the monies must pay off all his debts before you can inheirit. Actually, all his assets must go to pay off any debts before any of the heirs can collect - they only get assets less debts.

Answer 2

If you're the designated beneficiary of his insurance policies then that money usually doesn't pass through probate, meaning that his debtors have no claim on it.

If his estate has other assets, however, his creditors do have a claim on those. Put another way, if he owned a home and had a mortgage, the mortgage probably has to be paid off before his heirs can inherit the property. You're under no obligation to use the insurance to do that, though.

Answer 3

They can ask and demand all they want. But you cant get blood from a turnip. Nor can you collect a debt from a dead body. They can use some legal junk and sau that the money was accesible to him when he was alive and that yada yada yada, but if he had wanted to pay them, he would have. Should a father take a %500 loss and cash in an insurance policy set up for a child, no.
They can demand all they want, but since they cannot take the money directly from the account, they have no legal claims on it. There only option is to make you believe or convince you that you are somehow legally obligated to pay. If that were true, they would get the monies themselves from the account.
Ask any attorney though, Legal Aid Society or somesuch, thing is free.
But the man is dead, all debts owed are null and void at the time of his demise.

Answer 4

As three answerers above have told you, debt collectors can only demand money from the policy's proceeds if your father's estate is the beneficiary. If you're the named beneficiary, the money is yours, and you cannot be held responsible for your father's debts.

Most states have insurance laws that protect the proceeds of insurance policies from creditors. Call your state insurance commissioner's office and ask whether your state has such a law. If it does, ask that a copy be sent to you; you can then provide this to the collection agency. If they don't back off, report them to the state agency that regulates debt collectors; this may be your State's Division of Financial Regulation (or an agency with a similar name).

I hope this helps.

Answer 5

I think you will find it depends on whether this is money that is due to him (and after his death to his estate) or whether you were a direct beneficiary of the policy. If you were the beneficiary then the money is yours and you would not be obliged to pay. If your father was the beneficiary then the money goes to his estate, and his debts should be paid before any inheritance is paid. sorry

Answer 6

Debtors can make claims on your fathers estate, not direct to you at all. Your inheritance is that, yours, they have to make claims on his estate whatever that is worth. Preumably he left some form of a "will"

Answer 7

All his bills should be paid first.
Are you and ONLY child?
Debtors can go after his estate.

Answer 8

They can ask for it, but I'm not sure they can actually take it...The money was meant for you. If it's a large sum, you need to seek legal help. The laws will vary from state to state...